Instructions for Transportation
Contract Extensions (Form CE)

A board of education may agree
to extend a contract as many times as it wishes; there is no statutory
limit. However, a single extension agreement may only cover a period
of 1, 2, 3, 4, or 5 school years. The full term of a multi-year
extension must be included in a single Extension Form. For example,
where an extension covers a 5-year term, the ending date will be
June 30 of the fifth school year.

Only contracts that have been competitively bid,
or awarded through a Request for Proposals (RFP), may be extended.

Extension must be approved by the Superintendent
of Schools and filed within 120 calendar days of the first day
of service; otherwise, an aid deduction will be taken for each
school day that an extension is late.

Complete SED Code in left-hand corner and Prior
Year Contract/Extension Number in right-hand corner.

Complete all information in the address box.

Check the applicable Cost Justification
Form boxes that indicate whether the contractor has justified the
percentage increase in price and whether the board of education
has agreed to a CPI "pass-thru". District must analyze
all Cost Justification Forms to determine whether the percentage
increase in the contractor's cost is at least equal to the percentage
increase in the price of the extension. The Cost Justification
Form must be filed with the Department whenever a board of education
agrees to pay a contractor in excess of CPI. Where there are no
such excess costs, the Justification Form is not filed, but retained
in the district for six years.

Complete the contract agreement date of the original
contract that is being extended.

Complete all of the remaining entries that are
applicable. The first day of service should be the actual day on
which service begins.

In the space below the "unit cost" line,
enter the prior year contract or extension price(s) and the percentage
increase for the current year. If necessary, attach a separate
sheet.

The percentage increase in price must not exceed
the regional consumer price index (CPI) or the percentage increase
in the contractor's cost of operation, whichever is less.

The date the parties executed the extension must
be on or prior to the first day of service. NOTE: A deduction will
be taken for each school day that the execution date is subsequent
to the first day of service.

The date of the Superintendent's Approval must
be on or after the Date of Extension and prior to filing.

All signatures must be original.

Mail an original copy of Form
CE to the address on the top of the form within 120 calendar days
of the first day of service. Retain a copy for your records. The
Department will notify your district in writing of all extension
approvals.

A contract may not be materially
altered when it is extended. However, where the contract specifications
include language which authorizes additional service or a change
of service, such modifications can be made. The contract bid proposal
must include a specific price for the additional service or change
of service. NOTE: A letter describing any modifications must be
submitted to the Department.

Where extending a contract
that includes a number of bid items, each with a separate price,
attach a list of the various routes or destinations along with
prior year prices, the percentage increase, and current year prices.
On the face of Form CE, write "see attached" where the
extension price normally would be entered. Also, complete the Total
Anticipated Annual Cost entry for the aggregate cost of all the
routes or destinations listed.

Wherever possible, combine in a single contract extension all bid
items awarded to a particular contractor through a single
bid opening. [Note:
Commissioner's Regulation 156.1(c) states that separate contracts
shall be awarded for transportation to and from school and for
other purposes, including but not limited to field trips and athletic
events.]